Asked by Milano Irvin on Jun 20, 2024
Verified
The buyer's assessment of the risk associated with a supplier is influenced by whether it is a noncritical,leverage,bottleneck,or strategic purchase.
Supplier Risk
The potential for negative impacts to a company's operations, profitability, or reputation resulting from its suppliers' actions or inactions.
Strategic Purchase
The acquisition of goods or services that are vital to a company's operations or strategy, often involving significant expenditure and planning.
- Comprehend the factors critical for choosing and assessing suppliers.
Verified Answer
KA
Keyshawn AdamsJun 24, 2024
Final Answer :
True
Explanation :
The risk associated with a supplier is indeed influenced by the type of purchase, whether it is noncritical, leverage, bottleneck or strategic. This is because each type of purchase has different levels of importance and dependence on the supplier, which can impact the consequences of any potential risks or disruptions.
Learning Objectives
- Comprehend the factors critical for choosing and assessing suppliers.
Related questions
Buyers' Perceptions of Risk in Supplier Selection Decisions ...
The Traditional Supplier Evaluation Criteria Are ...
When Selecting New Suppliers, Which of the Following Would Not ...
What Supplier Selection Criteria Are Described by Production Capability, Labor ...
The Typical Process for Developing a Weighted Point Evaluation System ...